TLDR:
- The Fed’s expected 25 bps rate cut could mark the start of a broader policy easing cycle for risk markets.
- Ending quantitative easing would stop the liquidity drain, historically a bullish signal for crypto and stocks.
- Strong earnings from Big Tech companies can bolster market confidence and boost correlated crypto prices.
- A potential US-China trade deal could reduce inflation risks and restore cross-border liquidity flows.
This week can determine how money moves for the rest of the year. Federal Reserve meeting, big tech earnings and a key trade between the United States and China discussion are all packed into one window.
Any event can change the direction of liquidity, interest rates and risk appetite in the markets. Investors in both stocks and crypto are watching closely. Analysts say the mix of policy signals and corporate data could quietly start a new cycle of support for risk assets.
The post is shared by Bull theory on X framed this week as the “most important of Q4.” The account pointed to four market forces: interest rates, liquidity, income and trade. Each, it said, could play a big role in how capital flows before the end of the year.
Fed rate cuts and QT signals can move crypto prices
The Federal Reserve meets on Wednesday, with a 25 basis point rate cut already expected by traders. But according to Bull theorythe real story is in what Chairman Jerome Powell says next.
Investors are waiting to see if this is a one-time cut or the start of a deeper easing path. If Powell hints at slowing quantitative easing, it would mark a major shift. Ending QT means the Fed stops pulling liquidity from the system, a move that often supports risk assets.
Market watchers believe this is when yields could fall, the dollar could ease and liquidity could flow back to stocks and crypto. Traders often treat these political pivots as turning points.
Each bull cycle begins when central banks move from restraint to support, Bull theory added. If Powell’s tone signals that shift, crypto could be among the early beneficiaries.
Technology earnings and trade talks could boost market confidence
Just hours after the Fed decision, results from MicrosoftAlphabet and Meta enter the market. Apple and Amazon follow the next day. Together, these companies make up roughly 20 percent of the S&P 500.
Stronger reports from Big Tech could lead to a short-term rally in stocks. Historically, when stocks rise after strong gains, crypto prices often move with them. Currency traders say better results from tech leaders could boost risk-on sentiment just as the Fed turns dovish.
Later in the week, attention shifts to geopolitics. President Trump and Chinese President Xi are expected to meet discuss trade. Reports suggest both sides may reach a tentative agreement that lowers tariffs and opens liquidity channels.
If confirmed, it would reduce inflationary pressures and improve the backdrop for global assets, including crypto. The sequence is clear: rate cuts, QT easing, strong earnings and trade progress.
Together, they point to one thing, liquidity expansion. And for crypto traders, that’s often when the next stage higher begins.
